US Automakers Urge Trump to Block Chinese Car Imports

A coalition of US automakers, labor unions and lawmakers is urging Donald Trump to block Chinese vehicles from entering the US market ahead of a planned summit with Xi Jinping. The push reflects growing concern that expanded market access for Chinese automakers could disrupt domestic manufacturing and supply chains. Industry stakeholders warn that price competition fueled by state-backed subsidies could alter production dynamics and reduce domestic output across multiple segments of the automotive sector.

The coordinated effort follows remarks by Trump at the Detroit Economic Club in January, where he said he welcomed Chinese automakers building factories in the United States. The statement raised concerns among industry participants that existing trade barriers and regulatory safeguards could be weakened. In recent years, US policy has relied on tariffs and data security regulations to restrict the entry of Chinese vehicles and protect domestic production capacity.

Elissa Slotkin, US Senator from Michigan, addressed the issue at a Detroit event, stating, “Please do not make a bad deal.” She introduced the Connected Vehicle Security Act of 2026 alongside Bernie Moreno, US Senator from Ohio. The bill would formalize data security restrictions limiting Chinese vehicle access to the US market and grant the Department of Commerce authority to block technologies deemed high-risk.

Under the proposed legislation, software restrictions would take effect in 2027, followed by hardware restrictions in 2030. A companion bill in the House of Representatives, introduced by Debbie Dingell and John Moolenaar, would expand restrictions to include partnerships between US and Chinese automotive companies. Congressional aides indicated the measure could advance as part of a broader transportation funding package before the end of the year.

Major automakers, including Ford Motor Company, General Motors, Stellantis and Honda Motor Company, have expressed support for the Senate bill. The Alliance for Automotive Innovation also endorsed the proposal. Shawn Fain, president, United Auto Workers, said the legislation “puts common-sense guardrails on a major threat to our nation’s auto industry.”

Industry concerns are rooted in developments across international markets. Chinese automakers have expanded rapidly in Europe, reaching a 6% market share, with stronger penetration in countries such as Norway and the United Kingdom. In Mexico, 34 Chinese brands now hold approximately 15% of the market. Pricing disparities have also drawn attention, with vehicles such as Geely’s EX2 priced at about US$22,700 in Mexico, compared with a starting price of US$38,630 for Tesla’s Model 3 in the United States.

Meanwhile, Canada and China announced a tariff adjustment in Beijing that could reshape trade flows across multiple sectors. In late 2024, Canada imposed a 100% tariff on Chinese-made electric vehicles, aligning with US policy and limiting market access for those imports. China responded by imposing an 84% tariff on Canadian canola seed, affecting an export market valued in the billions.

Jamieson Greer, US Trade Representative, stated during an April event in Detroit that existing connected vehicle regulations would remain in place and that vehicle trade would not be part of upcoming discussions with China. Howard Lutnick, US Secretary of Commerce, also said Chinese investment in the US automotive sector is not under consideration. 

Despite those assurances, industry representatives remain cautious. Scott Paul, president of the Alliance for American Manufacturing, said the sector has not been fully reassured. “He’s left wiggle room in dealing with the auto sector,” Paul said, referring to Trump’s evolving position on trade and manufacturing policy.